Motorola Posts Q1 Loss

-- TWICE, 4/24/2008 12:33:00 PM

Schaumburg, Ill. — Motorola reported lower net sales and a wider net loss for its first quarter, ended March 29, due to a weakness in its handset sales.

Sales were $7.45 billion in the first quarter, lower than the previous year’s $9.65 billion, and the net loss from continuing operations in the quarter was $194 million, compared with a $181 million loss in the previous year’s first quarter.

Mobile devices segment sales were $3.3 billion, down 39 percent compared with the year-ago quarter. The operating loss was $418 million, compared with an operating loss of $233 million in the year-ago quarter. During the quarter, the company shipped 27.4 million handsets.

Its home and networks mobility segment sales were $2.4 billion, up 2 percent compared with the year-ago quarter. Operating earnings were $153 million, compared with operating earnings of $167 million in the year-ago quarter.

“During the first quarter, we made an important strategic decision to separate the company, creating two independent, publicly traded entities," said Greg Brown, president/CEO. “Improving the product portfolio in mobile devices and positioning both businesses for future success remains a top priority. Our home and networks mobility and enterprise mobility solutions businesses continue to expand their portfolios of solutions, grow internationally and deliver solid financial results.”